Block 10

Question 1

What are 4 things to remember when allocating resources for strategic driven budgeting?

Answer 1

1.Screen resources requests carefully?

2.Aprove only those that contribute to strategy execution

3.Provide the level of resources necessary for the success of strategic initiatives

4.Shift resources to higher-priority activities where new execution initiatives are needed

Question 2

What are the 3 ways that policies and operating procedures facilitate strategy execution?

Answer 2

1.Providing top-down guidance regarding how things need to be done

2.Helping ensure consistency in how activities are performed.

3.Promoting the creation of a work climate that facilitates good strategy execution

Question 3

In what 3 ways does top-down guidance facilitate good strategy execution?

Answer 3

1.Channels individual and group efforts along a strategy supportive path

2.Aligns the actions and behaviour of a company personnel with the requirements for good strategy execution

3.Places a limit on independent action and helps overcome resistance

Question 4

What two ways does enforcing consistency in how strategic critical activities are performed facilitate good strategy execution?

Answer 4

1.Improves the quality and reliability of strategy execution

2.Helps coordinate strategy execution efforts throughout the organisation

Question 5

How can a company use managing for continues improvement?

Answer 5

+Through 4 primary methods.

1.Benchmarking and adapting best practices found

2.Business process re-engineering

3.total quality management

4.Sig sigma quality programs.

Question 6

Out of the 4 continues improvement methods what are the 3 most powerful business process tools?

Answer 6

1.Business process re-engineering

2Total quality management

3.Six sigma quality programs

Question 7

What is business process re-engineering?

Answer 7

+Involves radically redesigning and streamlining work effort, flows and processes to achieve dramatic improvements in performance.

+ makes use of cross functional teams cutting edge technology and information systems to reset and refocus the organisation.

.

Question 8

What is total quality management?

Answer 8

+It entails the creation of a total quality culture, involving managers and employees at all levels bent on continuously improving the performance of every task and value chain activity.

+It can be seen as a long-term race with no end, in which success comes in small steps forward

Question 9

What is six sigma quality programs?

Answer 9

+The process of utilising statistical methods to improve quality by reducing defects and variability in business processes.

Question 10

What 3 principles are six sigma quality programs based on?

Answer 10

1,All work is a process

2.All processes have variability

3.all processes create data explaining that variability.

Question 11

What are the 2 types of six sigma processes?

Answer 11

1D.M.A.I.C.-Which gets used for existing processes that need improvement.

2.D.M.A.D.V.-Which gets used to develop new processes at six sigma quality

Question 12

What are the components of DMADV six sigma?

Answer 12

Define-What are our project goals and customer requirements?

Measure-How do we measure and determine both our goals and the needs of our customers?

Analyse-What existing process options do we have for meeting customer needs.

Design-Should we use an old or new process to meet customer needs and specifications?

Verify-How will we verify design performance and our ability to meet customer needs?

Question 13

What are the components of the DMAIC six sigma?

Answer 13

Define-Define what constitutes a defect or variation.

Measure-Collect data to find out why how and how often this defect occurs.

Analyse-Determine when why and where the defect is occurring.

Improve-Implement best practice to eliminate defect or variation.

Control-Implement training, monitoring and controls to sustain the improvement.

Question 14

What is the difference between business process re-engineering and the other continues business process improvement methods?

Answer 14

+BPR aims at one time quantum improvement.

+While the other processes aim at ongoing improvements.

Question 15

What are the 5 action steps to realise the value of TQM and Six sigma initiatives?

Answer 15

1.Demonstrate commitment to total quality and continuous improvement

2.Nudging people toward quality supportive behaviours, screening training and team building

3.Empowering employees-Improving quality should be seen as everyone’s job

4.Using online systems-Inform all latest best practices

5.Emphasising that performance can and must be improved, Competitors do not rest

Question 16

What are the 5 benefits of information technologies.

Answer 16

1.Enable better strategy execution through data-based decisions

2.strenghten organisational capabilities

3.allow for real time tracing of implementational initiatives and daily operations

4.Provide monitoring of empowered employees performance

5.Build closer relationships with customers

Question 17

What are the 5 key strategic performance indicators tracked by information systems?

Answer 17

1.Customer data

2.Operations data

3.Employee data

4.Supplier data

5.Financial performance data

Question 18

What are 3 techniques for winning sustained energetic commitment of employees?

Answer 18

1.Providing incentives and engaging in motivational practices that facilitate good strategy execution

2.Striking the right balance between rewards and punishment for individual performance

3. Linking employee rewards to strategically relevant organisational performance outcomes

Question 19

What are 8 non-monetary approaches to enhancing motivation?

Answer 19

1.Provide attractive perks and fringe benefits

2.Give rewards and other forms of public recognition

3.Rely on promotion from within whenever possible

4.Invite and act on ideas and suggestions

5.Create a work atmosphere of caring and mutual respect

6.State the strategic vision in inspirational terms

7.Share the firm’s critical information with employees

8.Provide a comfortable work environment.

Question 20

What are 6 guidelines for designing effective incentive compensation systems?

Answer 20

1.Make financial incentives a major not minor piece of the total compensation package

2.Have incentives that extend to all managers and all workers not just top management

3.Administer the reward system with scrupulous objectivity and fairness

4. Ensure that the performance targets set for each individual or team involve outcomes that the individual or team can personally effect

5.Keep the time between achieving performance targets and receiving the reward as short as possible

6.Avoid rewarding effort rather than results.

Question 21

What is corporate culture?

Answer 21

+The meshing of shared values, beliefs, business principles and traditions that instilled a firms operating style , employee behavioural norms and ingrained in attitudes and work atmosphere

Question 22

Why is corporate culture important?

Answer 22

+It influences the firms’ actions and approaches to conducting business.

+Culture eats strategy for breakfast.

Question 23

What are the 8 key features of a company’s corporate culture?

Answer 23

1.Values, principles and ethical standards

2.Managment practices and organisational policies

3.atmosphere and spirit in firms work climate

4.How managers and employees interact and relate to one another

5.Strenght of peer pressure to conform and observe norms

6.Actions and behaviours encouraged and rewarded

7.Traditions and stories about “how things are done around here”

8.How the firm treats stakeholders

Question 24

What are the 2 roles a company’s stated core values and ethical principles play?

Answer 24

1.Fosters a work climate where company personnel share convictions about how the company’s business is to be conducted

2.Provide company personnel with guidance about how to do their jobs- Steering them toward both doing things right and doing the right thing

Question 25

What are the 8 ways to embed culture norms in the organisation perpetuating the culture?

Answer 25

1.Screen applicants and hire those who will mesh well with the culture

2.Incorporate discussions of the firm’s culture and its behavioural norms into orientation programs for new employees and training courses for managers and employees

3.Have senior executives frequently reiterate the importance and role of the firms’ values and ethical principles at the firms’ events and in internal communication to employees

4.Expect managers at all levels to be cultural role models and exhibit advocated cultural norms in their behaviours

5.Make the display of cultural norms a factor in evaluating each person job performance

6.Stress that line managers all the way down to first level supervisors give ongoing attention to explaining the desired cultural traits and clarify their importance

7.Encourage company personnel to exert strong peer pressure on co workers to conform to expected culture norms

8.hold periodic ceremonies to honour people who excel in displaying the company’s values and ethical principles.

Question 26

What is the difference between strong culture firms and weak culture firms?

Answer 26

+Strong culture firms have deeply rooted and widely shared values, behavioural norms and operating approaches. It insists that its values and principles be reflected through all its personnel.

+Weak culture firms lack values and principles that are consistently preached or widely shared. They have fewer or no traditions, beliefs or values.

Question 27

What are the 3 reasons why corporate culture matters to the strategy execution process?

Answer 27

1.A culture well matched to the strategy focuses the attention of employees on what is important during the execution process.

2.Culture – induced peer pressure further induces personnel to do things in a manner that aids the cause of good strategy execution

3.a culture that is consistent with the requirements for good strategy execution can energise employees, deepen their commitment and enhance productivity.

Question 28

What are the 2 types o healthy cultures that aid in execution?

Answer 28

1.High performance cultures: -Commitment to achieving stretch objectives and accountability

2.Adaptive cultures: -Willingness to accept change and take on challenges.

Question 29

What are the 5 unhealthy cultures that impede strategy execution?

Answer 29

1.Imcompatable subcultures

2. change resistant cultures

3.Politicized cultures

4. insult, inwardly focused cultures

5.Unethical and greed driven cultures

Question 30

What is the top necessity for culture change efforts?

Answer 30

+Competent leadership

Question 31

What are the 4 steps to changing a problem culture?

Answer 31

1.Identify dysfunctional facets of the present culture

2.specefy what actions characterize the new culture

3.Talk openly about problems with current culture making a case for reform

4.Engrain new culture with intentional actions for change

Question 32

When making a compelling case for cultural change what 3 things are important?

Answer 32

1.Explain why and how certain behavioural norms and work practices are obstacles to good execution of strategy initiatives.
2.Explain how new behaviours and work practices will produce better results

3.If the need for cultural change is due to a change in strategy, cite reasons why the current strategy has to be modified.

Question 33

What are 7 substantive culture changing actions?

Answer 33

1. Replace key executives who are resisting or obstructing needed organisational and cultural change

2.Promote individuals who support cultural shifts and can serve as role models for the new cultural behavioural norms

3.Apoint outsiders with the desired cultural attributes to high profile positions

4.Screen all candidates for positions carefully, hiring only those who appear to fit in with the new culture

5.mandate that all personal attend culture training

6.Design compensation systems that boost the pay of teams and individuals that support culture change

7.Revise policies and procedures to drive cultural change

Question 34

What are the 3 types of symbolic culture changing actions a company can undertake?

Answer 34

1. Top executive and upper management behaviours

2.Ceremonial events to honour exemplary employees

3.Physical symbols that represent the new culture

Question 35

How long does it take to change a problem culture?

Answer 35

+It is never a short-term exercise.

+Requires a sustained persistent effort.

+Takes between 2-5 years.

Question 36

What does leading strategy execution require?

Answer 36

+Staying on top of what is happening and closely monitoring progress.

+putting constructive pressure on the organisation to execute the strategy well and achieve operational excellence.

+Initiating corrective action to improve strategy execution and achieve the targeted performance targets.

Question 37

What is one of the best methods for staying on top of how things are going during execution?

Answer 37

+Management by walking around (MBWA)

Question 38

What does MBWA involve?

Answer 38

+Spending time with people at company facilities, asking questions, listening to their opinions and concerns.

+It involves gathering firsthand information on the progress of the execution process.

Question 39

What are 7 mobilising efforts for excellence in strategy execution?

Answer 39

1.Treat employees as valued partners

2.Forster a feeling of loyalty and pride that energises members

3.Use empowerment to create a fully engaged workforce

4.Set stretch objectives that require personnel to give their all to achieve performance targets

5.Use benchmarking, re-engineering and TQM tools to focus the attention of the organisation on continuous improvement

6.Use motivational techniques and compensation incentives to inspire and nurture a results-oriented work climate and enforce high standards

7.Celebrate individual, group and company success

Question 40

What are the 3 requirements for successful corrective action?

Answer 40

1.THourough analysis of the situation

2.Good business judgement in deciding what actions to take

3. Good implementation of the corrective actions

Question 41

What 3 conditions indicate good strategic leadership and a well-managed enterprise?

Answer 41

1.It is difficult to separate leading the process of executing strategy from leading the strategy process

2.Crafting, implementing and executing strategy is a continuous process that requires much adjustment and fine tuning of the strategy to fit the changing circumstances

3.The tests of strategic leadership are whether the firm has a good strategy and business model, whether its strategy is competently executed and whether the firm is achieving its performance targets.